Foundry Coke Market

The global foundry coke market is expected to register a value CAGR of 4.20% during the forecast period, 2019–2026. The application of foundry coke in cupola furnace is expected to be the primary factor driving the growth of the global foundry coke market. The high demand for iron cast components in the automotive industry is also expected to fuel the growth of the global market. Furthermore, the surging demand for insulation materials across the world is expected to provide growth impetus to the players operating in the foundry coke market during the forecast period. However, the availability of substitute is expected to restrain the growth of the product market during the forecast period. The challenging factor to the market growth are the adverse effects associated with foundry coke production and the stringent regulatory standards.

Foundry coke is predominantly used as a fuel in cupola furnace to melt cast iron in foundries. Foundry coke exhibits distinctive features that are required in the cupola furnace melting process, which is increasing its adoption in as a copula furnace coke in foundries. Foundry coke has lower ash content as compared to other types of coke. It is also available in large sizes (~125 mm) and has a dense structure having porosity less than 50%, which increase its optimal use in iron melting in the cupola furnace. Likewise, foundry coke has high carbon content and calorific value and hence can produce maximum heat per kg and melt in less time and less quantity. The other coke types are of smaller sizes and need to be used in large amount for attaining the required furnace temperature. Since the coke melts at lesser quantity than the others, it is economical to use. Besides, foundry coke is durable, which allows its use in the production of a wide range of products viz. both ductile and cast-iron products. It is also high in carbon and graphite content.

The low-ash content quality of foundry coke makes it worthwhile for use in several industries and processes apart from cupola furnace, such as blast furnaces, steel plants, graphite industry, chemical industry, and soda-ash manufacturing processes.

The numerous benefits associated with foundry coke have increased its application in cupola furnace in iron foundries, which is expected to be the primary factor supporting the growth of the global foundry coke market during the forecast period.

The demand for insulation materials is growing at a significant rate across various end-use industries across the globe. Foundry coke is used as a source of fuel in the manufacturing process of stone wool, which is a highly versatile and effective insulation material The raw material used to produce stone wool is slag (slag, itself, is generated by integrated iron and steel plants as a blast furnace byproduct from pig iron production; other sources of slag include copper, lead, and phosphate industries), or the mixture of slag and rock (basalt or dolomite). The manufacturing process of stone wool involves the loading of foundry coke in alternate layers with the raw material (slag or rock) in the ratio 1:5-6 parts in a cupola furnace. The slag is heated to the molten state at a temperature of 1300–1650°C as the coke is ignited and burned in a cupola furnace. The process also uses the supply of combustion air through tuyeres located near the bottom of the furnace. The molten mineral charge exits through the cupola furnace into the water-cooled trough and then introduced onto a fiberization device, which transforms the molten material into fibers.

The growth of the construction industry has boosted the demand for insulation materials across the globe. According to the US Department of Energy, a building structure accounted for approximately 40% of the total energy consumed in the US in 2017. The majority of the energy used is for space heating and cooling, and a large fraction of heat is lost through the building envelope due to air leakages. Insulation materials help to minimize energy consumption by reducing air leakage present on external walls, window frames, door frames, roof underlays, attics, crawlspaces, and floorings. Additionally, indoor air quality can also be improved by blocking the infiltration of dust and allergens through small cavities and crevices. They also increase the building’s strength by preventing the accumulation of moisture in the walls and thus reduce condensation and mold growth. Various government initiatives such as the US Green Building Council for Homes (LEED-H), LEED for commercial buildings, and the US Environmental Protection Agency’s ENERGY STAR rating are favoring the growth of the insulation market. Furthermore, insulation materials are also widely used across various end-use industries to cover pipes, tanks & vessels, columns, and walls, among others. The rapid industrialization and urbanization in developing countries and surge in the building renovation projects in developed economies are propelling the demand for insulations.

Thus, the growth in the demand for insulation materials is likely to create lucrative opportunities for players operating in the global foundry coke market during the forecast period.

Extensive research and development have resulted in the introduction of substitutes of foundry coke, which is expected to restrain the growth of the global foundry coke market during the forecast period

Bindered anthracite briquettes can be used as a fuel in foundry cupolas instead of conventional foundry coke. The anthracite briquettes include fine anthracite grains that are bound together with collagen, lignin, and silicon. The binders offer strength to anthracite briquettes through the temperatures range from ambient temperature up to 1550 °C, usually encountered in a foundry cupola furnace. The bindered anthracite briquettes offer similar structural strength and fuel content as conventional foundry coke. Furthermore, the production of conventional foundry coke requires about 15% of the energy of raw coal during pyrolysis and also releases volatile organic air pollutants, which is harmful to the environment as well as human health. In contrast, the briquetting process consumes less energy without releasing any pollutants. Also, the iron castings produced using the bindered anthracite briquettes in a copula furnace are of similar quality as of foundry coke.

Thus, the increasing preference for bindered anthracite briquettes over foundry coke is expected to hamper the global market growth during the forecast period.

Foundry coke plays a vital role in the manufacturing of cast iron products. The growth in the production of foundry coke has raised concerns over its potential impacts on the air and water quality, and potential exposure to toxic substances. Hazardous air pollutants (HAPs) include gases that are generated when molds containing carbon materials are subjected to high temperatures. Moreover, the major companies producing foundry coke are facing lawsuits due to the violation of environment control standards. For instance, in November 2016, Erie Coke Corporation paid USD 0.5 million to settle a lawsuit from the Environmental Protection Agency (EPA) to violate the Clean Air Act by the emissions of toxic benzene from its foundry coke manufacturing facility at Erie, Pennsylvania. Also, on 28 February 2019, Drummond Company, Inc, the largest producer of foundry coke in the US agreed to pay USD 0.775 million to settle benzene air pollution violations put forth by the US Environmental Protection Agency and the Jefferson County Board of Health.

In September 2018, a dispute was observed over the soil study conducted by the University of Buffalo (UB) in the vicinity of Tonawanda Coke Corp, which manufactures foundry coke. The residents of the city are concerned over the pollution level on the soil in their yards and their children’s schools and playgrounds from the emission of benzene, a carcinogen, from the Tonawanda Coke Corp, which manufactures foundry coke. This led to a judge order to the Tonawanda Coke Corp. to fund a soil study valued at USD 0.71 million, which was being conducted by a research team from the University at Buffalo. The study, however, was a subject of dispute between the mayor of the City of Tonawanda and researchers from UB due to the concerns over the research methodology.

Thus, the hazardous effects of foundry coke production on the environment and the stringent regulatory standards are expected to be the major challenge for the market players.